On the agenda are high-level meetings between Dr. Mahathir and PNG Prime Minister Sir Michael Somare. The two leaders are expected to discuss Malaysia's state-owned oil and gas company, Petronas, getting involved in the PNG oil and gas sector.

Dr. Mahathir and Sir Michael are also expected to talk about the construction of a multi-billion dollar gas pipeline project that would allow PNG to ship its gas to the lucrative Far East and Australia markets.

PNG's Chief Secretary, Joshua Kalinoe, did confirm that - aside from oil and gas investment - his country was hoping for further Malaysian speculation in forestry, agriculture and information technology. Malaysia is already the second-biggest investor in the country.

However, a delegation of this sort comes at a time of tension between Malaysia and PNG's biggest investor, Australia. There has been a recent cooling of relations between the two countries. Furthermore, such a move by Malaysia is seen as worrying for Australia because both PNG and East Timor are major client states of the island nation.

What have not helped matters are tensions between the PNG government and Australia over the latter's call for more transparency in the PNG economy in exchange for continued aid. There are also tensions between Australia and East Timor over the demarcation of offshore oil blocks.